Today's Analysis on Capital One and American Express: Credit Quality to Lift Card Providers

 Today's Analysis on Capital One and American Express: Credit Quality to Lift
                                Card Providers

  PR Newswire

  LONDON, January 22, 2013

LONDON, January 22, 2013 /PRNewswire/ --

Credit service providers continue to improve even if the latest earnings
reports are indicative of a flat quarter. Several key metrics suggest a
profitable year for companies such as Capital One Financial Corp. (NYSE: COF)
and American Express Company (NYSE: AXP). StockCall Analysts completed an
in-depth technical analysis on Capital One and American Express following
their earnings release last week. Sign up today to access our free reports on
these companies at http://www.stockcall.com/todaysopinions   

Improving credit quality is fueling optimism for credit service providers in
2013. As credit quality gets better, credit providers typically end up with
more cash, which is put towards expansion efforts or returned to investors via
dividend or share buyback. It also allows lenders to set aside fewer
provisions for loan losses.

The recent quarters from both Capital One and American Express illustrate this
trend as they each posted lower charge-off rates than they did a year ago.
Capital One had a charge off rate of 2.26% while the rate for American Express
was about 2%. However, for its fourth quarter earnings, Capital One put aside
$1.2 billion as provision for loan losses, which was up $137 million as
compared to a year ago. StockCall's complete technical analysis report on
Capital One is ready for download at http://www.StockCall.com/COF012213.pdf

American Express Co. [ Free Technical Report on AXP ] ^[ ^1 ^] saw its loan
losses for the recently reported quarter at all time lows. The company,
however, has kept in reserve $638 million to cover any loan losses.

The industry will still face growth obstacles this year though. Relatively
unchanged unemployment rates bode poorly for any upticks in card usage and
spending. Stiff competition and the possibility of future regulatory changes
will also challenge card providers.

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1.American Express Co. Technical Analysis [
    http://www.StockCall.com/AmericanExpressCo012213.pdf ]

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